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Bjorn Borg AB (SE:BORG)
:BORG
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Bjorn Borg AB (BORG) AI Stock Analysis

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SE:BORG

Bjorn Borg AB

(Frankfurt:BORG)

Rating:68Neutral
Price Target:
kr63.00
▲(2.44% Upside)
Bjorn Borg AB's stock score is primarily supported by strong financial performance, particularly in revenue growth and profitability. However, challenges in cash flow generation and a lack of positive technical indicators weigh on the score. The valuation is reasonable, with a fair P/E ratio and a decent dividend yield, providing some balance to the overall assessment.

Bjorn Borg AB (BORG) vs. iShares MSCI Sweden ETF (EWD)

Bjorn Borg AB Business Overview & Revenue Model

Company DescriptionBjörn Borg AB (publ), together with its subsidiaries, engages in the design, development, production, wholesale, and retail of underwear, sports apparel, footwear, bags, eyewear, and fragrances under the Björn Borg brand. The company operates through Wholesale, Consumer Direct, Distributors, and License segments. It offers underwear for men, women, and kids, as well as pajamas and socks through independent retailers, fashion and sports chains, department stores, Björn Borg stores, and e-commerce sites; and clothing collections for women and men through sports retailers, sports chains, department stores, Björn Borg stores, and e-commerce sites. The company also provides leisure and sports shoes for men and women through independent shoe retailers, shoe and sports chains, department stores, e-tailers, and Björn Borg stores, as well as through www.bjornborg.com; sports bags, backpacks, and suitcases, as well as wallets, gloves, and belts through bag retailers, sports shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites; and backpacks, gym bags, and duffle bags, as well as wallets, gloves, and belts through luggage and sporting goods shops, retail chains, department stores, shop-in-shops, Björn Borg stores, and e-commerce sites. Further, it offers spectacle frames and sunglasses through the licensee's distribution organizations, fashion stores, department stores, and Björn Borg stores. The company sells its products in Sweden, the Netherlands, Finland, Germany, Belgium, Norway, Denmark, England, Switzerland, the United States, Slovenia, France, and Canada. As of December 31, 2020, it operated 32 Björn Borg stores, including 29 group owned stores. The company was founded in 1984 and is headquartered in Solna, Sweden.
How the Company Makes MoneyBjorn Borg AB generates revenue primarily through the sale of its branded apparel and underwear. The company's revenue model is based on wholesale distribution to retailers, direct-to-consumer sales through its own branded stores, and online e-commerce platforms. Key revenue streams include the sale of sportswear, underwear, and footwear, with a significant portion of earnings coming from the brand's strong presence in the underwear segment. Additionally, Bjorn Borg AB engages in licensing agreements, where third parties manufacture and sell products under the Björn Borg brand, contributing to the company's revenue through royalties. Strategic partnerships and collaborations with retailers and distributors also play a crucial role in expanding the company's market reach and enhancing its financial performance.

Bjorn Borg AB Financial Statement Overview

Summary
Bjorn Borg AB shows strong revenue growth and profitability, supported by a solid balance sheet with manageable leverage. However, cash flow generation poses a risk, with declining free cash flow growth and low operating cash flow conversion. The company should focus on improving cash flow efficiency to sustain its growth trajectory.
Income Statement
85
Very Positive
Bjorn Borg AB demonstrates strong revenue growth, with a TTM revenue growth rate of 25.5%, indicating robust demand and market presence. The company maintains healthy profitability with a gross profit margin of 51.4% and a net profit margin of 8.3% for TTM. However, there is a slight decline in gross profit margin compared to the previous year, suggesting potential cost pressures.
Balance Sheet
78
Positive
The company has a solid balance sheet with a manageable debt-to-equity ratio of 0.34, indicating prudent financial leverage. Return on equity is strong at 23.4%, reflecting efficient use of equity capital. However, the equity ratio of 47.6% suggests moderate reliance on debt financing.
Cash Flow
70
Positive
Cash flow generation is a concern, with a significant decline in free cash flow growth of -62.4% TTM. The operating cash flow to net income ratio is low at 0.09, indicating potential challenges in converting profits into cash. Nonetheless, the free cash flow to net income ratio remains healthy at 61.7%, suggesting some resilience in cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.03B989.70M872.26M835.17M796.10M705.21M
Gross Profit527.54M520.65M294.81M424.51M444.43M369.98M
EBITDA134.60M133.98M136.83M109.45M147.38M64.90M
Net Income84.81M72.67M75.97M50.87M86.03M18.83M
Balance Sheet
Total Assets745.47M708.87M631.52M653.39M680.67M619.02M
Cash, Cash Equivalents and Short-Term Investments11.26M8.77M26.65M16.03M96.74M70.23M
Total Debt121.94M58.94M42.85M81.65M135.95M156.08M
Total Liabilities396.35M356.39M280.71M328.58M346.45M328.00M
Stockholders Equity355.06M359.36M357.12M331.41M340.08M296.31M
Cash Flow
Free Cash Flow19.76M61.99M110.14M52.18M103.42M133.62M
Operating Cash Flow32.02M76.04M121.28M60.50M113.93M142.58M
Investing Cash Flow-12.26M-14.05M-11.14M-8.32M-10.51M-8.96M
Financing Cash Flow-25.39M-77.86M-101.55M-135.94M-80.12M-90.31M

Bjorn Borg AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price61.50
Price Trends
50DMA
59.31
Positive
100DMA
57.96
Positive
200DMA
55.12
Positive
Market Momentum
MACD
1.15
Negative
RSI
56.59
Neutral
STOCH
65.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BORG, the sentiment is Positive. The current price of 61.5 is above the 20-day moving average (MA) of 59.85, above the 50-day MA of 59.31, and above the 200-day MA of 55.12, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 65.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BORG.

Bjorn Borg AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
kr1.55B18.2425.24%2.44%10.32%13.49%
65
Neutral
kr5.50B15.74
2.54%
61
Neutral
$17.92B12.81-3.11%2.97%1.30%-14.28%
$724.93M114.281.42%2.27%
€462.34M18.8022.85%
€210.63M18.1850.07%
€1.74B26.2729.21%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:BORG
Bjorn Borg AB
61.50
2.40
4.05%
SE:BOOZT
Boozt AB
88.05
-13.35
-13.17%
FNXTF
Fenix Outdoor International AG
53.22
-6.33
-10.63%
DE:0GE
RVRC Holding AB
4.25
0.47
12.43%
DE:CD20
Nelly Group AB
6.87
4.71
218.06%
DE:10H
Scandic Hotels Group AB
7.86
2.46
45.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025